What is a Corporate Advance?

You should have a healthy dose of skepticism and concern if your monthly mortgage statement includes a line item charge for a “Corporate Advance.” While the phrase sounds innocent enough, it is not.  What you do not realize is that this phrase “Corporate Advances” may cost you your home.


What does that phrase even mean? Corporate Advances are “disbursement for servicing-related expenses (not escrow expenses) paid with servicer funds rather than escrow funds, to be recovered from the borrower. They could include foreclosure expenses, attorney fees, bankruptcy fees, force placed insurance, and so forth” according to the National Consumer Law Center. The Federal Trade Commission warns “it’s important to review your billing statements carefully and question added fees. If fees appear on your statement under general headings like “other fees” or “corporate advances,” contact your servicer – in writing – as soon as possible to get an explanation of those fees and a reason they’ve been charged to your account.”


From our experience representing consumer law clients facing foreclosure, “corporate advances” can be a black box where your lender or mortgage loan servicer hides unwarranted, unlawful or other fees you do not owe. Regular borrower monthly payments can then be removed from your account and applied to pay off these unwarranted charges. This misapplication of your monthly payments from your account toward these phony expenses could leave you months past due, allowing the mortgage servicer to claim (falsely) that you are in default. Before you know it, more foreclosure related fees are piled onto your account and you can’t get current on your home loan.


If you see “Corporate Advances” on your mortgage statement and you fear or are facing a foreclosure, you should contact Humphreys Wallace Humphreys today. You can contact us by clicking Free Case Review or by clicking on the contact us page on our website.

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